US pushes Apec to help on global trade talks

08 Sep, 2006

US Treasury Secretary Henry Paulson on Thursday pushed Pacific Rim economic partners to help save stalled world trade liberalisation talks. "I can't think of anything ... that can have a more positive impact on the global economy than trade liberalisation," Paulson told reporters at the start of a two-day Asia-Pacific Economic Co-operation (Apec) finance ministers meeting in Vietnam.
The Doha round of trade liberalisation talks stalled in July after five years of stop-start negotiations. Apec, which says it accounts for 47 percent of world trade, believes it can influence the Doha round aimed at reducing trade barriers. The 21-member group also includes China, Russia, Japan and South Korea with a total market of about 2.6 billion people.
Officials said ministers were to work on a statement to be issued at the end of the conference on Friday that would include trade and bolstering global financial systems against fiscal crises.
US officials travelling with Paulson said trade imbalances and efforts to close bank accounts linked to North Korea, which Washington suspects is developing a nuclear weapon, were among the issues he would raise.
At a photo-op before talks with Vietnam Prime Minister Nguyen Tan Dung, Paulson thanked Vietnam for "co-operating with the Treasury" on the issue. In July, Washington asked Hanoi to check bank accounts opened in Vietnam by North Korea.
Finance ministers said that in Thursday morning's session, they talked mainly about policies on tax systems and tax expenditures, plus trade liberalisation.
"There was a very strong sense among several of us that that remains a key economic priority," said Singapore second finance minister Tharman Shanmugaratnam.
Rich nations are looking to Asian countries to reduce the region's hefty current account surpluses by spurring domestic demand and letting their currencies rise in value.
A record US trade deficit with China has roused the ire of US lawmakers in particular, prompting them to call for the Asian giant to let its currency rise at a faster pace.
"You can't come here with this group without discussing how to manage the global imbalances and the adjustment process," Paulson said. But ironing out global imbalances was a joint responsibility and not the job for any one country or region, Chinese Vice Finance Minister Li Yong said on Thursday, on the sidelines of preparatory meetings.

Read Comments